Palm oil prices will decline as the world’s most-used edible oil is no longer competitive against alternatives even after dropping to the lowest level since 2009, according to Dorab Mistry, director at Godrej International Ltd. Futures retreated.

“Palm desperately needs to regain its competitiveness,” Mistry said at conference in Mumbai yesterday. Futures must drop to 1,900 ringgit ($581) a metric ton to revive consumption, he said, reiterating a forecast made on Sept. 15. The outlook compares with a price of 2,168 ringgit a ton on Bursa Malaysia Derivative at 10:52 a.m. in Kuala Lumpur after the most-active contract lost 0.4 percent.